Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — 2Q20 Earnings Presentation
19 slides from Vina Concha Y Toro's earnings presentation, August 2020
Slide 1: Investor Presentation 2Q20 Results
Investor Presentation 2Q20 Results August 2020
Slide 2: Forward Looking Statements
2 Forward This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are Looking subject to risks and uncertainties outside of Viña Concha y Toro’s control that could Statements cause Viña Concha y Toro’s actual results to differ materia
Slide 3: Results – 2Q20 & 1H20
3 Results – 2Q20 & 1H20 The Company obtained historical results, which demonstrate the strength of our business model, a successful restructuring plan, and the commitment of our people in a challenging scenario. 2Q 1H (Ch$ million) 2Q20 2Q19 Chg (%) 1H20 1H19 Chg (%) Sales 192,850 165,577 16.5% 343,
Slide 4: 1. Top line reflect growth across all markets
4 1. Top line reflect growth across all markets • Accelerating Export Markets in the 2Q driven by distribution offices. Sales (Ch$ million) 2Q20 2Q19 Chg (%) 1H20 1H19 Chg (%) Export Markets 129,929 109,194 19.0% 228,289 193,737 17.8% • Chile resumed growth, with normalization Chile 21,520 20,158 6.
Slide 5: 2Q20 - Strong distribution offices in UK, Brazil, Nordics, and Mexico
5 2Q20 - Strong distribution offices in UK, Brazil, Nordics, and Mexico Sales breakdown by category in the Market Matrix Sales by Market Value Volume A Markets: A Markets • Strong performance where we have been able to execute our strategy and promptly UK 58.7% 31.6% respond to the demands in the ne
Slide 6: 2Q20 - Double-digit growth rates at Principal and Invest brands
6 2Q20 - Double-digit growth rates at Principal and Invest brands Sales growth by brand category Sales value breakdown by brand category Value Volume 22,9% 25,9% Principal 31.6% 11.5% 17,7% 19,4% Invest 27.8% 16.4% Protect 23.5% 7.8% 32,3% 34,3% Watch (24.6%) (21.7%) 5,6% Other brands (8.9%) (8.1%)
Slide 7: 2Q20 - Casillero del Diablo Reserva – Outstanding growth across markets
7 2Q20 - Casillero del Diablo Reserva – Outstanding growth across markets Sales Value +36% , Volume +14%. Volume growth across all key markets: • Export Markets +13%. Top performers • UK +27% • Brazil +91% • Ireland +233% • Netherlands +51% • South Korea +161% • Canada +28% • Nordics +17% • Mexico +
Slide 8: Invest Brand Category: +16% volume and +28% value growth
8 Invest Brand Category: +16% volume and +28% value growth Volume growth driven by UK +47%, Brazil +136%, Ireland +200%, Poland +80%, Chile +45%. CONO SUR CONO SUR TRIVENTO BICICLETA ORGANICO RESERVE DIABLO 1000 STORIES BONTERRA 2019 TH. 9L-CASES 1,438 234 945 112 160 485 2Q20 VOLUME GROWTH 15% 30%
Slide 9: 2. EBITDA +56% in 2Q20
9 2. EBITDA +56% in 2Q20 - Sales driven by brands in Principal and Invest (Ch$ million) 2Q20 2Q19 Var % categories, exports through distribution Sales 192,850 165,577 16.5% offices, and Chile domestic market. Gross profit 78,488 60,521 29.7% Gross margin 40.7% 36.6% 410 bp - Gross margin driven by f
Slide 10: EBITDA margin evolution through quarters
10 EBITDA margin evolution through quarters In 2Q20, the Company achieved historical EBITDA margin, continuing with the positive trend seen in the past quarters. EBITDA Margin* 1Q 2Q 3Q 4Q 12M 2017 11.1% 15.1% 14.7% 16.2% 14.5% 2018 12.9% 14.9% 13.5% 15.9% 14.5% 2019 12.1% 16.8% 17.6% 17.8% 16.4% 20
Slide 11: 3. Non-operating profit
11 3. Non-operating profit (Ch$ million) 2Q20 2Q19 Chg (%) Var $ Financial income 318 144 120.6% 174 Financial costs (3,932) (2,918) 34.7% (1,014) Share of profit (loss) of associates and joint (54) (22) 143.3% (32) ventures using equity method Exchange differences (1,589) 1,423 (3,012) Adjustment u
Slide 12: 4. Results summary – 2Q20 & 1H20
12 4. Results summary – 2Q20 & 1H20 2Q 1H (Ch$ million) 2Q20 2Q19 Chg (%) 1H20 1H19 Chg (%) Sales 192,850 165,577 16.5% 343,963 296,263 16.1% EBIT 33,759 19,787 70.6% 50,214 29,193 72.0% EBIT margin 17.5% 12.0% 560 bp 14.6% 9.9% 470 bp Non-operating profit (5,256) (1,760) 198.6% (10,361) (3,622) 186
Slide 13: 5. Final Remarks
13 5. Final Remarks - The scenario remains uncertain, with some markets easing restrictions. Rebounds in the contagion are a challenge for a back to normal context in the short term. - In this context, we remain with the focus on prioritizing our key brands and markets, and on ensuring the continuit
Slide 14: Investor Presentation 2Q20 Results
Investor Presentation 2Q20 Results August 2020
Slide 15: Capital Expenditures
15 Capital Expenditures 90,5 67,1 58,2 42,5 35,0 2016 2017 2018 2019 2020E Capex corresponding to infrastructure and productive capacity. Does not include increase in property of Kross Beer in 2017 and Excelsior in 2018 and 2019 Investor Presentation August, 2020
Slide 16: Financial debt maturity structure
16 Financial debt maturity structure (1) (billion Ch$) 205,1 127,6 67,7 68,0 34,0 0,4 8,6 2020 2021 2022 2023 2024 2025-2044 Debt Maturity LTM EBITDA Source: The Company (1) Considers financial liabilities excluding derivatives and leases. * LTM EBITDA as of June 30, 2020. Investor Presentation Augu
Slide 17: Brand matrix: focus on Principal and Invest brands
17 Brand matrix: focus on Principal and Invest brands 2019 FY High Invest Principal • Don Melchor % of sales • Marques de Casa Concha • Trivento Golden 19.0% • Trivento Reserve 20.8% value • Diablo • Casillero del Diablo • CdD Reserva Especial1 • Cono Sur Orgánico • 1,000 Stories • Bonterra Potentia
Slide 18: Brand matrix - Implications
18 Brand matrix - Implications Portfolio rationalization: Exit from 82 brand out of 304. Special focus on Casillero del Diablo brand (PRINCIPAL). Investments in brands with the highest potential from our 3 origins (INVEST). Commercial and marketing focus on new brands development to support a high g
Slide 19: Market matrix: Specialized commercial areas
19 Market matrix: Specialized commercial areas A markets B markets C markets Presence & > Priority Next wave Others Priority Commercial and Distribution Market Manager Offices 11 markets 9 markets 115 markets Markets > + 107 countries % of Sales > 80% 10% 10% Commercial offices: 13 - Distributors: 3